We lower our guidance for full-year 2013 net profit from DKK 6.5-9 billion to DKK 6-8 billion. We do so on the basis of the profit for the third quarter but also because of restructuring charges relating to our operations in Ireland and the acceleration of cost initiatives.
We expect total income to be below the level in 2012. Net interest income is also expected to be slightly below the 2012 level. The adverse effects of lower interest rate levels and weak loan demand more than offset the results of initiatives to lift interest income. Net fee income is expected to be above the level in 2012 because of the management actions taken. Net trading income and insurance income at Danica Pension are expected to be well below the 2012 levels.
Expenses are expected to be around DKK 24 billion because the positive effects of our ongoing cost-efficiency initiatives are partly offset by restructuring costs. Total impairments are expected to fall well below the level in 2012.
After our decision to discontinue our Personal Banking and Business Banking activities in Ireland, we currently estimate a risk of impairments on this portfolio over the coming five quarters of up to DKK 2 billion.
In preparation for repayment of the state hybrid capital in the first half of 2014, we expect to issue further capital in the form of debt instruments in the coming quarters.
This guidance is subject to uncertainty and depends on economic conditions.
Archive - Previous outlook statements
Last updated on 31 October 2013